Minimum room rate cramps Colombo hotel occupancy – SLAITO

The implementation of the minimum room rate has slowed the growth of the Colombo hotels occupancy rates and it has also driven away many MICE groups away from Sri Lanka.

President of Sri Lanka Inbound Tour Operators (SLAITO) Nishad Wijetunga said that Colombo City hotels ended 2023 with an average occupancy of around 60%. “If the MRR was not imposed this could have gone up to over 75%.”

He also said the MRR also drove away walk-in guests (FIT) out of Colombo.Wijetunga also said that it was strange to note that Sri Lanka Tourism is not making an effort to move away from this concept when President RanilWickremesinghe at the Hotels Association AGM clearly said that a MRR was not needed and market sources should determine room rates.

However Chalaka Gajabahu, Chairman of the Sri Lanka Tourism Promotion Bureau defended the room rate stating that it had helped the Colombo hotel staff to earn a better service charge. Meanwhile Managing Director CDC events, Imran Hassan said that the MRR delivered a severe blow to MICE (conference and events) as it drove away several conventions from Sri Lanka to other countries as the rate in Colombo hotels was too high. “There was an Indian group of doctors who wanted to hold a two day conference with 900 guests and due to MRR they shifted it to Thailand at the end of last year.”

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